Brazil is the New Black

abarrelfullabarrelfull wrote on 15 Jan 2010 08:14
Tags: bg brazil galp petrobras

Latest Blogs

{"module":"feed\/FeedModule","params":{"src":"http:\/\/abarrelfull.wikidot.com\/feed\/pages\/pagename\/blog%3A_start\/category\/blog\/limit\/10\/t\/My+Blog","limit":"4","module_body":"* %%linked_title%%"}}


Today's theme is Brazil, simply because a number of unrelated stories nicely illustrate the rise of that country as an energy giant. Brazil is the most fashionable thing in the industry.

First up we have an update on drilling in the sub salt, by one of the fortunate first movers.

BG Group (25%) and partners Petrobras (65% and operator) and Galp (10%) have announced the conclusion of the formation test on the Iara well (1-BRSA-618-RJS or 1-RJS-656) in the BM-S-11 appraisal area in the Santos Basin pre-salt, offshore Brazil.

The tests proved the exploration potential of the area by producing light 28° API oil and confirmed the estimated recoverable volumes for Iara to be in the order of 3 to 4 billion barrels of light oil and natural gas

There have been many rumours and conspiracies over the size or availability of these reserves, so good news is welcome.

The daddy in that partnership is in the news for other reasons as well. On one hand it is expanding refining capacity.

A ceremony that will include President Luiz Inacio Lula da Silva will mark the start of construction at Bacabeira in the northern state of Maranhao, Petrobras said. Work on the refinery is expected to be completed in September 2013.

Meanwhile Petrobras is talking to Galp (the other partner) about taking a stake in the company.

Brazilian state energy giant Petroleo Brasileiro is in talks to buy a stake in Portugal's Galp Energia, Mines and Energy Minister Edison Lobao confirmed Wednesday.

This would give Petrobras a entrance into the downstream market in Europe. However Petrobras is being coy.

Petrobras, whishes to clarify the news published by the Brazilian and international press regarding: potential acquisition of the stakes held by ENI S.p.A. in Galp Energia; possible partnerships with Galp Energia in the exploration segment; and contracts for oil products distribution in Europe.
The Company clarifies that it is always analyzing investment opportunities in Brazil and abroad that are aligned to the strategies set forth in its Business Plan, but that in this case there is no negotiation in progress.

As they have pursued Galp in the past, there is probably something going on.

Meanwhile, the company has released its reserve data for 2009.

On December 31st, 2009 Petrobras' Proved Reserves of oil, condensate and natural gas amounted to 14.865 billion barrels of oil equivalent (boe), a decrease of 1.5% in relation to last year figures.

The number will no doubt rise as they continue to work in the subsalt.

A few years ago, few people outside the industry had ever heard of Petrobras. In a few years time, you will be hard pressed to find someone who is ignorant of them.


Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License